Strategic Averaging Method and How it Works

You usually hear people asking you if you are a trader or an investor if you told them that you are into stocks.

Para po sa iba, Traders are people who buys stocks base on trend and indicators and simply sell it after a few days or even within a day after nila magkaroon ng small profit or gains. I call it gambling, I have tried it before. Yes, exciting seeing greens on your portfolio and earning some. But you also loses and since I am good at math I notice something, Hindi talaga ako kumikita, Umiikot lang yun pera I even lose sometimes. In the first place, the reason I decided to open an account and invest in stocks is to "Invest" for my early retirement for my future. 

Investors are people who buy stocks sa mga giant companies either lump sum or regularly and take profit after several years. Most people today use Money Cost Averaging, dahil mas madali ito at mas affordable. Money Cost Averaging ay yung pagbili ng stocks in a regular basis in a fixed amount, depends on your budget. Once a month, Once every 3 months and so on. 

There is a third way, At eto yung ginawa ko, Some people call it Swing trading or Flipping Strategy but is commonly known as Strategic Averaging Method.

So How does it work? Eto yung pagbili ng stocks sa mga companies na sa tingin nila ay undervalued or below their fair value. They will set a BUY BELOW PRICE and TARGET PRICE

They will continue to buy a stocks as long as yung current price ay mas mababa sa na-set nilang BUY BELOW PRICE. If the stock price ay above or already on buy below price level, They will hold muna kung anung merun sila, They they will wait the stocks to be near or hit their Target Price then sell.

After that, Maghahanap ulit ng other stocks na below undervalued or below fair value. Please rememeber in this strategy, You only choose the giants o yung big companies na malabo maluge or nandyan pa din after 50 years. 

Kung tatanungin mo ko kung pano ang nila nacocompute ang BUY BELOW PRICE and TARGET PRICE, Honestly, it is a little bit complicated, That's why others like TRC (TrulyRichClub) or PinoyInvestor has monthly membership fee for this kind of stock updates. 

BUT, don't worry most of the online brokers like COL FINANCIAL and PHILSTOCKS offers it for FREE, You just need to pick your stocks na gusto mong bilin and do your own little research dahil mas madame silang list of companies compare sa TRC and Pinoyinvestor na well picked na.

Am I a member of TRC or PinoyInvesotor? No sir, Hindi po. Kuripot po ako. Instead I spent a lot of hours studying how stock market work before, the fundamentals and technicals, I master the basics. Kung gugustuhin, kaya mo din. Sabihin nalang natin na may konting free time ako. Ngayun, I do my own research then Kinocompare ko na lang sa research ni Philstocks at Col Financial. 

You can join these groups if you want to, Legit po sila at hindi scam, At talagang nakakatulong po sila sa mga members nila to earn passive income lalo na sa mga taong walang time to study Stock Market.

I also idolize Bro. Bo Sanchez (Founder of TRC), I read his books, na lagi ko ni rerecommend, Yung free ebook din nya ang nag pa inspire sakin mag invest sa stock market. My Maid Invests in the Stock Market...and Why You Should, Too!

Sadyang kuripot lang po ako kaya di ako nag join kaya I look for a method that I can do it for free.

That's it guys, You learn how simple SAM is and how it works. It will be always your decision what method you will going to use. At the end of the day, it is still your money. 

You can also check my other post about SAM here, What Is SAM? - Strategic Averaging Method

Happy Investing!